Nev. group hails US Senate passage of Internet tax

CARSON CITY, Nev. (AP) -- The Retail Association of Nevada is hailing U.S. Senate passage of a bill that would allow states to collect tax on Internet sales.

The Senate on Monday approved the Marketplace Fairness Act on a vote of 69-27.

The vote came the same day the Nevada Assembly approved a resolution urging Congress to support the measure.

Under existing law, only retailers with a physical presence in the state are required to collect sales tax on online purchases. In Nevada, consumers of non-taxes goods are supposed to pay the sales tax directly to the state, though that is rarely done.

As a result, many online sales are tax-free, giving Internet retailers an advantage over brick-and-mortar stores.

The association says a federal law will make all businesses operate under the same rules.